Stop wasting time and money on all the BS today. I'm going to show you the best possible Investments you can make in your 20s to set you up nicely. so let's do it. Hello and welcome back to your new video Sean's name and I constantly get asked all the time what someone should invest in if they're looking to build their net worth or they just have some idle cash.

and honestly I love when people ask me this question because it kind of tells me that they're serious about getting off the hamster wheel of life and getting to the point where they can actually retire. which sounds like super futuristic when you're in your 20s. But I promise you retirement can be a lot earlier if you set yourself up with a little bit of brain power in mind. So before I drop the absolute best four Investments you can possibly make I need a preference a couple things.

One and most importantly, I am not a financial advisor by any means I'm just some nerdy dude who likes Financial topics. so please do not take this as a form of advice. this is just me giving my opinion. And then two, This is not for people who are nearing retirement.

this is for younger people who have a long ways to go. Until retirement comes, you're still actively working, you still have some cash coming in the door. So this is for those younger folks. and add that I'm not saying that the Investments we're talking about today are super risky by any means.

However, they are all long-term plays. So if you're planning on doing an investment and doing a little get rich quick scheme not gonna happen, you have to be willing to invest this money and let it ride for years and years and years before you even look at it, let alone touch it. And then lastly, number three: you do not want to be loading super heavy on any of the investment vehicles that we talk about today. The amount of money that you invest in any of these vehicles should fit comfortably in your budget.

and if you don't know how to Budget Check the link in the description I've made a video on budgeting 101 on the best possible way you can budget, so make sure that the Investments you put from today's video fit within your comfort means. But alright, let's jump into the four investment vehicles today that are best for you. Hands down, the best possible investment that you could throw your money into is the S P 500. And this is great for those who don't have tons of money to put in, or for those who just don't want to do anything besides set something up on automatic payments.

If you've got anywhere from a hundred bucks a week to 1500 bucks a week to invest, the S P 500 is the best thing to do. and the best way to actually invest in the S P 500 is to just drop your money into an ETF that actually tracks it. So if you're sitting there going showing what the heck is the SMB 500, let me break it down for you. Super.

Simply, the S P 500 is. Think of it like a single stock that tracks the performance of over 500 of the biggest and best companies in the United States. And the reason it is such a good investment outside of the baller returns that you can get is the fact that it tracks and diversifies over 500 companies. so you get aggressive enough to make some money.

But some of the conservativeness to kind of make sure your money doesn't absolutely tank which is still a possibility with any investment, but you're a lot less likely to when you spread it over 500 companies versus one Because let's be honest: I Don't care how big a company is or how great it's doing, you can't simply drop your money into one company and let it ride for the rest of your life, making you absolute great returns over time. Because every company Rises and Falls take Toys R Us For example, that company has a brand that was absolutely a freaking freight train that went through and was a dominating company in the United States and then out of nowhere Toys R Us just essentially vanished. If you put all your money into Toys R Us and just let it ride, you pretty much would not have made any money at all. In fact, you probably would have lost a lot of money I Know, it's kind of crazy to think about, but it's not a matter of if a company will fall.

it's a matter of when Jeff Bezos has the exact same mentality and that dude owns one of the biggest companies in the country right now. In fact, it's actually the world. it's not even the country. Bottom line: what I'm getting at is the S P 500 is a phenomenal investment to earn you some great money while still being conservative enough to save you from taking heavy losses.

In fact, the S P 500 has outperformed 90 percent of portfolios that are professionally managed. We're talking portfolios with billions and billions of dollars. So if the S P 500 can outperform 90 percent of those and you're investing peanuts compared to those funds, it's a no-brainer to throw a lot of money into that and just let it ride for the next 5, 10, 15, 25 years. And while obviously returns are going to vary tremendously, you can pretty much expect to earn about a seven to eleven percent return year over year on your money in the S P 500, because that's the kind of track record it's had over the last 20, 30, 40 years.

whatever it is. So a measly 500 investment each month for 30 years would earn you 677 thousand dollars in profits alone. That's insane if you started that at the age of 25. by the age of 55, you're gonna have close to a million dollars set up in retirement to essentially do nothing.

So save yourself on that 500 car payment each month and throw it in the S P 500. There's not many Investments that can perform this way. so if you want to actually get into buying an ETF with the S P 500, there are many ways to do it. But I'm going to break down very briefly how you can do this.

So step one: Go to the link in the description and sign up for Robinhood. You get a free stock without links. Nothing new you don't even need to sign up for Robin Good. All I'm saying is you need a brokerage account like Robinhood I Make it simple by having a link down below.

Honestly, use any brokerage account you want. Once you're inside your account. search for the ticker spy Spy It's called the Spyder S P 500 ETF There's a bunch of ETFs that track the S P 500. This is one of my favorites.

This is one I personally invest lots of money into and it's performed really well for me. And then step three: you want to add this to your monthly budget. This is the most important part that people do not do. Think of it like an obligation.

Every month you are required to make a 100 200 300 payment every month into this S P 500 adding to your portfolio Every month, is going to do you wonders regardless of what the market is doing. And then for a bonus which is what I do is you can throw on a drip or kind of, um, a dividends reinvestment. uh, for one of these. ETFs So let's say, every quarter you get a certain amount of dividends for owning this stock or this ETF you can have your brokerage account Robinhood allows this where you can essentially have them reinvest it back into the S P 500.

so you're buying more and more shares on autopilot without you doing anything. I Cannot stress this enough How amazing the S P 500 is. That's why it's number one on my list, but moving on, number two. You should know this one was coming up on my list because of who I am and what I do.

But it is. investing in real estate. Real estate has so many benefits outside of the returns you're actually getting whether it's appreciation, cash flow, principal, pay down. but there's also some amazing tax benefits with it as well.

Real estate would be number one on my list except for the fact that it's much more challenging to get into. you have to qualify, you have to have a down payment. You have to do a lot of things to actually own real estate, and for someone in their 20s, that's a lot more challenging to do. But I need to put it on this list because of how important it is to do.

You need to be buying and owning real estate. It is the most tried and true investment since the beginning of time. The sooner you can buy real estate, the better off you're going to be regardless of the market. Remember, we're not selling our assets anytime soon.

We're in our 20s or we're younger. We're going to be holding these things for a really long time. I Bought my first piece of real estate at the age of 23. You can check the video I'll leave a link down below and since then I've picked up a couple more problems along the way.

Sure, the Market's kind of been doing one of these ever since I bought them, but in the long term another 10 20 years from now, they're going to be worth so much more than what I bought them for. and it is going to be an absolute freight train of an investment. When it comes to the returns of real estate, you can probably expect to average about five to seven percent on your appreciated value of the home, but again, there are so many other benefits and it actually depends on which area you're in. A lot of the properties I own have gotten closer to a nine percent return year over year, so there's a lot more factors that comes into play.

but you are getting a tremendous amount of benefits. In fact, if you combine all the benefits that you get, you get your cash flow, your appreciation, your principal pay down, and your tax benefits. If you combine all those together, investors say you average about 22 to 25 percent I Don't know many Investments that are relatively safe earning you those kinds of returns. and this could be its own video on how you get started with a real estate portfolio.

But just for the sake of this one, let's break it down into three easy steps: One, Buy a house that you're going to live in, you're gonna need anywhere from a three to a five percent down payment into it. Put some money into renovating and fixing it up a little bit and start saving for another down payment. Then mostly, step three: Go buy a new property with a minimum down, rent out your old one and rinse and repeat. That's what we call house hacking and that's what 99 of people do to start building their real estate portfolio.

But while real estate is probably the best kinds of returns you can get, Number three on our list is much simpler and it's something that a lot of people have access to, but that they don't utilize. And we're talking about a 401k. And hold up if you're sitting there going. Oh my employer, What I do doesn't allow me to do a 401k? No big deal.

You could do a Roth IRA which is very similar. Now, a 401k is absolutely amazing because it is a pre-tax account. That means if you make seventy five thousand dollars a year and you drop ten thousand dollars into a 401k in the eyes of the IRS, you only made sixty five thousand dollars that year. so you're only tax on 65 000 a year.

I Cannot tell you how amazing this is for high income wage earners. It saves you a tremendous amount on taxes. and nine times out of ten, if you have a 401k plan, most of the time your employer matches some sort of contribution that you do that is free money that you need to be taken advantage of. All employers do it differently.

At my company I Believe we offer a three percent contribution Max Like the very basic Safe Harbor match, but that is free money. and when it comes to the returns you can kind of expect on a 401K If you take out the employer contributions, you're going to get anywhere from a five to eight percent return on the year depending on your age, depending on what your plan is invested in. A bunch of other factors, but let's just say about a five to eight percent return. So if you have the ability for a 401k, please please do it and set it up with your employer.

And if you don't, you need to go the Roth IRA route. Let me show you how to do that. Number one: you need to get set up for a brokerage account that allows a Roth IRA Robinhood actually allows this. Now again, don't feel like you have to use the Robinhood link down below, or even use Robinhood in general.

But to keep things simple for you again, click the link down below, get set up with a brokerage account, and then you can actually set up a Roth from within that. And actually, since not all brokerage accounts offer Roths, I'll actually provide another alternative link that you could do. I actually have a lot of money in an E-trade account, So I'll leave a link down below to set up an E-Trade brokerage. I Like that for a little more traditional investment vehicles and I hold a lot of money there, so it's again, totally your preference.

I'm just giving you some options, but you need to get set up with a brokerage account that allows Roth IRAs and then two. To keep things simple, once you're within your platform, just use one of the pre-built Roth IRA templates that they have and then lastly, treat this like the S P 500. add it to part of your budget whether it's 50 bucks a month or whatever kind of number makes sense for you making a reoccurring investment into your Roth similar to how a 401k would be taken out of your paychecks. I Love 401ks and Roths I personally Max mine out every single year and I highly recommend you take advantage of those investment vehicles and then number four on our list is.

it is something that no one seems to talk about and is one of the most underrated investment vehicles is investing in yourself by paying down debt. It blows my mind that people are always asking what should I invest in and what's going to yield me, you know High returns I Want to shoot for a 10 or 12 investment return which is challenging to get in the first place when someone has credit card debt. High interest loans XYZ This should be pretty self-explanatory but if you have credit cards with balances on them, those are likely going to have 10 to 30 percent interest rates. Some loans might have interest rates at 10 to 15 percent, so stop trying to strive for big Returns on the invested money that you have.

Instead, just pay down your debt because that is a guaranteed 10 return, 20 return, whatever type of interest rate you have that is a guaranteed return in your pocket. So when people come to me and they say Sean what should I invest in I say well. one, how much money do you have and two, how much debt do you have and what kind of debt is that? If you have any debt over a five to six percent interest rate, then don't invest any money at all. Just pay down that debt.

That is the safest investment you can possibly make because you're guaranteed to have a five to six return on that money. So if you learned anything in this video I Hope you learned to focus on your debt first. pay down your debt unless it's like zero percent interest or two percent interest. If it's super small, don't worry about it.

but if it's five to six percent or more, then you need to focus on paying down that debt before you do any other of the investment vehicles I mentioned in this video, but those are my top four. Investments Someone can make in their 20s to really set themselves up financially in the future. Today's sure is so fitting because small steps equals big moves when it comes to investing. I Know it's Gonna Hurt Starting out in your 20s that you know thousand bucks a month you're doing and investing is going to feel like it's literally doing nothing but I Promise you in 10 to 15 years when you are leagues ahead of the rest, you're gonna think anyway again.

this is not Financial Advice So ultimately I Just hope you enjoyed the video. maybe learned something new Got A New Perspective If you did, I would appreciate you hitting that like button and sharing the video with a friend. And if you're not already subscribed on this channel, then make sure you do that. I'm always trying to release some info that'll help you out and put you ahead of the rest.

Otherwise, I'll see you in the next one.